Finbar in trading halt for raising

West Australian developer
Finbar Group
went into a trading halt yesterday, as it sought to raise $46 million from investors to back its expanding pipeline of developments in the north-west of Western Australia and apartment sites in Perth.

Finbar was looking to place $28.7 million of stock with institutions through Bell Potter Securities. The raising also included an underwritten share purchase plan to raise $16.9 million.

The raising was priced at $1.15 per share, which is a discount to the last closing price of $1.31. But it is higher than Finbar’s previous raising at $1 per share in April.

The group has a market capitalisation of about $220 million and trades on a price-earnings multiple of 8.1 times.

Finbar’s pipeline of work includes Adagio, the first stage of the Symphony City development at the former ABC site on Terrace Road, Perth. Finbar is working on the project with joint venture partner Ventrade Australia.

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The second stage of the Symphony City redevelopment, Concerto, is in the early design stages. The final stage of the $450 million project, Toccata, will consist of luxury apartments.

In the booming north-west of WA, Finbar has secured a government contract for a $225 million apartment development in the Pilbara town of Karratha, and is hoping for development approval shortly.

The group is desirous of building a longer-term presence in the region. The WA government is trying to attract housing development to the area under its Pilbara Cities initiative, in order to fix an accommodation shortage.

Finbar completed several apartment projects in and around Perth in the past financial year, mostly in joint ventures. They include the 10-storey Code apartment building, which sold out. It also built Verve apartments in Northbridge, which was almost sold out.

The Saint, an $85 million joint venture apartment project, has also nearly sold out.

Finbar’s Gateway office development in Victoria Park, another joint venture, is likely to sell out as well. Most of the project has been leased to Monadelphous Group.

Projects under construction include an apartment joint venture called The Edge in Victoria Park. It is also building Times Two, the Fairlanes Residences and associated office suites, and Eighteen on Plain, all in East Perth.

Finbar has $268 million pre-sales in its $1.35 billion project pipeline and its projects are separately financed.

The group’s net profit after tax rose by 24 per cent to a record $23.56 million for the financial year ending June 30.